On the Google announcement, can you help us understand, when that comes online, how should we think about revenues and profitability as we sort of build out our models?
The Google contract is part of a comprehensive AI data campus in Andhra. It's one of the campus participants. Currently, due to various confidential reasons, both being public companies, we are constrained as to how we are going to outlay the development plan of that specific contract. But we hope to discuss that in more detail with investors post or around our annual presentations, by which time both parties would have agreed to the rollout plans. At this stage, we were not able to build that out. That's why we just simply mentioned that we have executed it and will be outlining that over the next six months as we clarify the development plans.
Insight on defence and aero business - where we are and where we want to be after five years, qualitative broad brush?
The technology and defence business is currently still close to INR500 crores EBITDA from the total. We are not yet reporting it as a significant independent segment - it's in Others segment. From a capex side, it is currently even less than 3%-4% of our capex, it is not ramping up. As soon as that business ramps up sufficiently, we will bring it into segmental reporting. It is a technology business which provides services and the product side is less important than the services contract. Those things take a long time to develop. Qualitatively the business is going well, the services contracts are going well, the technology platforms are maturing and we are being recognized as a reliable technology partner for defence purposes. It is just that at the moment, it is not of sufficient size for us to put that into segmental reporting.
On ANIL and green hydrogen - the SECI ammonia tender has been quite healthy given the participation and the rate of INR50 per kg. Any color and what about your own plans with respect to green hydrogen?
First we want to complete testing of our electrolyzers because our scale is quite large. Till we complete that we are not specifically commenting on anything. Once we have that, we will take a formal investment decision planning, etc. We have all the basic ingredients lined up: resource capacity, completion of cell module line and wind turbine facilities in ANIL, ancillary industry set up in Mundra (EVA, back-sheet, glass, etc.), land, the corridor for pipelines and transmission. Mundra is already there, so we don't need anything for evacuation. We are prepared, but currently testing. Electrolyzers are under pilot stage. We should start getting pilot results towards the middle of next calendar year, or the second quarter. Based on that, we will then be able to give a much clearer investment horizon.
Anything you would want to share on the efficiencies or the metrics with respect to the electrolyzers, as in like per kilowatt hour or anything of that sort, or is it too premature?
We will have the results and the curves by middle of next year. So, that will be the best time to share.
On solar module sales - in the second quarter, those were up year over year, but down sequentially by about 20%. What's happening in the marketplace?
The total income from Q2 '25 and Q2 '26 is broadly the same on similar quarter-to-quarter comparison. If you do a half yearly to half yearly comparison, you see a small change in revenue of roughly 5%, and correspondingly a slightly higher impact on EBITDA, which is negative 14%. That's largely fully explained by the uncertainty around the tariff announcements from the U.S., and consequently, the pricing rationalization that we had to implement to deal with the tariff structures. And this changeover will wash over the next 18 months or so, and then you will see the numbers normalize, even if the tariffs were not to change.
On cash flow from operations - it was down fairly significantly vis-a-vis last year's first half. How should we think about cash flow from operations, free cash flow, leverage by end of FY26, and the rights issue timing, stages, and use of proceeds?
During this quarter, the copper plant went from work-in-progress to operations. As it went into operations, the entirety of the change is explained by the way you would record inventories and the way you would record now in an operational setting the working capital. So, adjusted for those two changes, there is not much change in the operating cash flow at all. Operating cash prior to working capital movements was INR7,661 crore in the same period last year, and is ~INR7,250 crore this year. This is one-off adjustment due to the coming online of an asset, then will normalize. For this half-year, it will be better to look at operating profit before working capital changes for a more accurate picture of the underlying.
How should we think about leverage and rights issue, timing, use of proceeds?
If you look at Page 26 of the presentation, you will see gross debt and below that shareholders' loan, at roughly around INR20,000-odd crores, some of which are inter-entity. Those loans have been provided by the families holding to Adani Enterprises for growth. They don't seek to recover that. They are comfortable to participate in the rights issue, and the effective nature will be that the shareholder loan becomes equity, and the excess rights exercised by non-promoter shareholders will be the growth capital used primarily for the airports business, and some for roads and Adani new industries business. You will see a very significant change in the gross debt number post this, giving us higher capacity to grow faster. It funds the airport requirements over the next 12 months, and certain other smaller requirements in roads etc., in line with our capital management plan.
What are the capital expenditures for H1, target for FY26, and a broad breakup of capex target for FY26 across various businesses?
H1 capex was roughly around INR16,300 crores, and for the full year, we expect it to be around about INR36,000 crores. Broadly, of this number, about 10,500 is in airports, about 6,000 in roads, about 9,000 in materials (petrochemicals), metals and mining about 3,500, and Adani new industries about 5,500.
On the airport business - we are nearing the first phase of capex in Navi Mumbai. Do you expect to start the second phase of capex over the next couple of years? And what could be the quantum?
We will do the commercial operation of Phase 1 already this quarter, and Phase 2 we are already starting. We will accelerate the capex from next financial year, considering the pent-up demand is much higher than 20 million, the capacity we are building. So we will not wait for 2 years. We will restart, and it will be in the tune of INR30,000 crores.
What could be the timeline for getting the final tariff order for Navi Mumbai Airport in opening year?
Navi Mumbai interim tariff order has already been given by AERA. The final tariff order normally takes 3 to 6 months, so it should come any time. But interim tariff is there, which allows us to start charging the airlines.
On the solar manufacturing business - what is the order book at end of H1, and progress of 6 GW solar module capacity? Are we on target to commission this capacity by June '26?
We are pretty confident of finishing around that time, June '26. And the order book is pretty much full on the quarterly capacities. So the run rate would be around 1.2 GW per quarter.
Is it fair to expect that the mix of domestic and exports will be the same as what you reported in this quarter, or do you think export will pick up?
It is likely to remain the same, because of the fundamental nature of the way the trade discussions and geopolitics is going on. We just have to have a much more comprehensive and deeper planning in terms of markets. So you can expect that the revised mix is likely to remain. It might episodically change based on market conditions, but it will now remain the same because that gives us a much more defensive capability against something like this in the future.
On the wind side - are we participating in third-party orders? Have you received any third-party order during the quarter? What is the volume you think you can execute in FY26? Are you participating in PSU tenders?
Currently, it's a limited third-party order, roughly around 300 MW, so about 100 sets. We are not participating in the PSU tenders. We are full up on capacity for ourselves.
On the CSD development for Navi Mumbai - had some bottleneck with respect to availability of labour. Is that resolved and are we on timeline?
It was not related to the labour per se. There were restrictions because of the EC clearance and pending Supreme Court case. That got cleared now and we are in full speed. The work that we could start, we have already started. Mumbai and Navi Mumbai excavation work has already started and now we are on track to bring all the CSD properties live in 2029-2030 timeframe.
On the ANIL/modules business - for the last two quarters we have operated at above 100% capacity. Any particular reason the producible capacity is slightly more than what the rated capacity is?
It's more reported module sales and module exports. Over the year, we are operating close to about 1.093 GW. So roughly around 100% of the capacity, but in a quarter what can happen is the sales might be reported particularly in a given quarter. For example, the quarter before, sales were 990 MW and then the higher number got reported the following quarter and before that was 893 MW. So sometimes sales might be reported in a quarter, but we are operating close to 100% capacity, which is basically 1.093 GW.
On airports capex of approximately INR10,500 crores - the breakup between airports and city side. Is city side also part of this or separately? If separately, what is the spend for next two-three years?
This INR10,500 crores has very minimal part of CSD. The CSD initially is now all the approvals are in place, excavation is started. The real capex for CSD will start from next financial year. Revenue generation for city side will start FY 29-30. The total capex outlay for the city side we have is around INR20,000 crores.